CORNERSTONE BANCORP, INC. Quarterly Report - March 31, 2023

PALATINE, Ill., April 28, 2023 /PRNewswire/ --

FIRST QUARTER 2023 HIGHLIGHTS (At or for period ended 3/31/2023)

Income Statement Highlights

• Driven by an increased net interest margin, consolidated net income was $3.0 million in 1Q23, or $2.97 per diluted share, compared to $1.6 million in 1Q22, or $1.58 per diluted share.
• The net interest margin (NIM) was 3.57% for 1Q23, compared to 2.56% for 1Q22.
• Interest on interest-bearing deposit accounts was $2.3 million for 1Q23 compared to $115,000 for 1Q22.  
• The yield on the loan portfolio has risen to 5.33% for 1Q23 compared to 4.36% for 1Q22.
• Noninterest expense was $5.9 million in 1Q23 compared to $5.5 million in 1Q22.

Balance Sheet Highlights

• Total consolidated assets declined 10.2% to $957.8 million at March 31, 2023, compared to $1.06 billion a year earlier primarily from expected client disbursements.
• Tangible shareholders' equity improved 17.4% to $65.3 million at March 31, 2023, compared to $55.6 million a year earlier.
• Interest-bearing deposits at the Federal Reserve Bank totaled $185.4 million at March 31, 2023 (19.4% of total assets) compared to $297.2 million a year earlier (27.9% of total assets).
• The securities portfolio totaled $130.2 million at March 31, 2023, compared to $143.3 million a year earlier.  The weighted average remaining life approximates three years. 
• The loan portfolio, excluding PPP loans, totaled $625.2 million at March 31, 2023, $45.7 million, or 7.9%, higher than a year earlier.
• Total deposits and repurchase agreements declined 11.3% to $867.3 million at March 31, 2023, compared to $977.6 million a year earlier.  Clients are reinvesting in their businesses as balances per deposit account are moving toward the levels of pre-pandemic averages. 
• The Corporation's other borrowings have declined to $7.8 million at March 31, 2023 compared to $17.8 million a year earlier.
• The Bank continues to be well-capitalized, with a Tier 1 Leverage Capital Ratio of 8.86% at March 31, 2023.

Trust and Wealth Management

• Trust assets totaled $881.9 million at March 31, 2023, compared to $932.5 million a year earlier.  Our number of trust clients continues to grow, but market volatility has impacted asset values.

About Cornerstone Bancorp, Inc.
Founded in 2000, Cornerstone Bancorp, Inc. (OTC Pink: CNBP), and its wholly-owned subsidiary, Cornerstone National Bank & Trust Company (collectively "Cornerstone") is committed to serving the commercial banking and investment needs of families and family-owned businesses. Cornerstone serves its clients by investing heavily in people and technology, providing an uncommon relationship experience. Cornerstone has been successful in attracting new clients and talent as the Chicago market consolidates and large banks deemphasize relationships in favor of an institutional approach.

Cornerstone is a leader in commercial lending services including equipment, real estate and construction loans and operating lines of credit as well as business treasury management services and association loans for condominium and townhome associations.

For individuals and families, wealth management services are offered, including investment management, trust and custody services, retirement plans, and estate and guardianship administration.

Headquartered in Palatine, Illinois, Cornerstone maintains offices in Crystal Lake, Deer Park, Naperville and Schaumburg.  Visit us on the web at www.cnbtc.bank.

Forward Looking Statement
This release may contain "forward-looking statements" that are subject to risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy and management's plans and objectives for future operations are forward-looking statements. When used in this report, the words "anticipate," "believe," "estimate," "expect," and "intend" and words or phrases of similar meaning, as they relate to Cornerstone or management, are intended to help identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that management's expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include our ability to maintain or expand our market share or net interest margins, and to implement our marketing and growth strategies. Further, actual results may be affected by our ability to compete on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy, as those factors relate to our cost of funds and return on assets. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks may have a material adverse impact on our operations and business.

Financial Highlights (Unaudited)
($ in Thousands, Except Share and Per Share Data)
	For the Quarter Ending				Year To Date
Income Statement	31-Mar-23	31-Mar-22	% Change		31-Dec -22	31-Dec -21
Net Interest Income	$                 8,651	$                 6,447	34.2 %		$            31,997	$            29,159
Provision for Loan Losses	-	-	N\A		-	50
Noninterest Income	1,325	1,287	2.9 %		5,992	7,979
Noninterest Expense	5,859	5,544	5.7 %		23,314	23,314
Provision for Income Taxes	1,162	623	86.5 %		4,193	3,948
Net Income	$                2,955	$                 1,568	88.5 %		$            10,482	$              9,826
Ratios
Return on Average Assets *	1.21 %	0.60 %	99.7 %		1.00 %	1.00 %
Return on Average Stockholders' Equity*	17.20 %	10.92 %	57.5 %		16.83 %	18.80 %
Net Interest Margin	3.57 %	2.56 %	39.3 %		3.14 %	3.05 %
Allowance for Loan Losses to Gross Loans **	1.30 %	1.40 %	-7.4 %		1.34 %	1.44 %
Dividends Per Share	$                         -	$                         -	N\A		$                       -	$                       -
Earnings Per Share	$                   2.97	$                   1.58	88.5 %		$              10.54	$                9.88
	End of Period				End of Period
Balance Sheet Data	31-Mar-23	31-Mar-22	% Change		31-Dec-22	31-Dec-21
Total Assets	$           957,763	$         1,066,660	-10.2 %		$            989,110	$             950,731
Loans, Net of Allowance for Loan Loss	$           617,394	$            586,627	5.2 %		$            600,999	$             583,423
Deposits and Repurchase Agreements	$           867,327	$            977,599	-11.3 %		$            899,327	$             860,067
Trust Preferred Securities	$              10,310	$               10,310	0.0 %		$              10,310	$               10,310
Other Borrowings	$                7,763	$               17,763	-56.3 %		$              12,763	$               17,763
Tangible Stockholders' Equity	$              65,250	$               55,592	17.4 %		$              61,364	$               56,865
Trust Assets	$            881,918	$            932,536	-5.4 %		$            848,711	$         1,016,393
Stock Value Per Common Share Data
Price-To-Earnings Ratio *	5.43	9.97	-45.5 %		6.10	6.47
Price-To-Tangible Book Value Ratio	1.00	1.14	-12.5 %		1.04	1.12
Tangible Book Value Per Share	$                65.64	$                 55.92	17.4 %		$                 61.73	$                 57.20
Number of Shares Outstanding	994,088	994,088			994,088	994,088
Average Number of Shares Outstanding	994,088	994,088			994,088	994,088
Stock Price - High	$                65.50	$                 64.80			$                 64.30	$                 64.00
Low	$                64.10	$                 63.50			$                 63.10	$                 60.00
Ending	$                65.50	$                 63.75			$                 64.30	$                 64.00

 

 

*	- Quarter returns are based on annualized Net Income; Year-To-Date returns are based on the Last Twelve Months' (LTM) Net Income
**	- Excludes PPP loans which are 100% SBA guaranteed

 

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SOURCE Cornerstone Bancorp, Inc.